We live in different and far less financially stable times than your dad did.
Debt for education to gain you a specific marketable skillset (NOT just 'college') = good debt
Debt on a home loan, where mortgage interest is fully deductible from your income taxes = good debt.
Debt to gain access to assets that will work to provide a return, like tools, work truck, office space = good debt
Debt for clothes, unless necessary for earning income = bad debt
Auto loans, unless it meets the above criteria = bad debt
Debt for travel, unless for business purposes = bad debt
The problem with owning one's home outright in the current tax climate is that it's dead money that isn't earning you anything. Owning the asset gives you exposure to profit as the value increases... but keep in mind that the amount of equity you have in the home means nothing in the calculation. Therefore, it's much better to have that money elsewhere, working for YOU. Then if you lose your job or something happens, you have a big pile of easily accessible money to dip into for payments.
The moment you're late on your mortgage payment you can kiss accessing your equity goodbye, so it's a terrible place to keep the bulk of your nest egg. Half the reason to have one at all is to be able to access it when shit hits the fan, right?
Since I'm kinda bored today cause I ain't got much going on. Obviously, I'm on the RIU on a beautiful Saturday afternoon right? Anyway, I thought I would entertain your financial philosophy with a little experience I have witnessed. I assure you tho, I am not tryin to argue. And I do agree with your philosophy. And I also agree with the 100% debt free philosophy and believe those philosophies are far more respectable than the scenario I am about to share.
When my father died he left my mom a paid for house on a nice sized lot and a whole lot of paid for stuff. Not investment grade stuff, just stuff like tools and lawnmowers, his paid for truck. Stuff. And they had pretty much declared bankruptcy a few years earlier so although not debt free, they didn't have much debt at all. And she collected from his life insurance that could have easily settled all debt. And she got a portion of his pension.
So. She sells the humble paid for house for a song. It wasn't a mansion or anything but was a cute little place. Had everything she needed. He actually put in hard wood floors and recently remodeled the bathroom for her. Some would be all like thinking it was a mansion tho it was very small. The off the main lot was awesome in my opinion.
She rents a bigger house for a while. Finally she buys a cute little townhouse. Maybe a few more square feet than the house she sold. But she liked it better. Got a mortgage and everything cause she spent all the insurance and all the money she got selling his stuff. It was actually pretty cheap, but not in the best of areas. Plus she was disabled and it had stairs. I didn't really get it but, she was happy. I know right? It was actually a decent investment tho for what she paid for it during the housing crisis. About every other time I talked to her she was always whining about she's going to have to declare bankruptcy because of CC's. Yeah I gave her money from time to time.
Anyway, maybe 6 years later? A decade for sure after dad died she had a major stroke. While in the hospital I discover, she had just bought a new refrigerator. On credit. A new laptop. On credit. She had bought a new kitchen table that wasn't even delivered yet. On credit. And when she passed they discovered a closet full of clothes. Fresh with the tags still on them. Don't worry. I'm not sad. My parents lived long enough eventful lives.
So. Discovering all this gives me a WTF moment? Then I thought about it. My siblings pretty much divied everything up that wasn't on the slab. House, clothes. Furniture. Car. Knick knacks. I didn't even want anything cause I have a house full of my own paid for stuff. So.... It's all good.
So. Truth is. The townhouse got foreclosed and went to auction. Those debts won't be paid.
I know it ain't right but? Does she care dude? Think about it. As far as I know she was cremated and didn't take anything with her? Or the debt?
I know most wanna leave something for their children and my bro and sis got stuff that was sentimental to them. I have some wonderful memories so I'm good with it. I don't think anyone expected anything more. Just a WTF kinda moment bro. Think about it. Peace and love my friend.
